The French government is about to release more than 62 million US dollars in funding to the French Polynesian government which has been grappling with unprecedented financial problems.
This has been confirmed by the overseas territories minister, Victorin Lurel, after talks in Paris with the visiting French Polynesian president, Oscar Temaru.
A ministry statement says in return, French Polynesia will have to speed up the reforms approved by its territorial assembly last year which provides for spending cuts.
It also says the disbursement of the funds is in line with the French government's willingness to engage in a constructive and peaceful manner with Papeete.
Relations had been strained under the Nicolas Sarkozy-led administration in part over Paris' objection to Mr Temaru's campaign for the territory to be re-enscribed on the UN decolonisation list.